... Arguments given in the favor of mathematics look attractive in the first instance but they are not free of problems. It is argued by many economists that mathematical models are recognized in providing a rational approach to solving many of the problems in decision making, allocation, and forecasting1. Mathematical models present theoretical work in their own language, which is a tool of communication, but we know that a language must be simple and easily understood to be appreciated, but as a language, mathematics is not simple and easy. In this paper, an attempt is made to discourage the excessive use of mathematics in economics, by describing its drawbacks in the economic theory. Attention is given to the scientific nature of the economics. In the beginning some definitions are given and comparison between different models are given, to develop an understanding in the subject. Mathematisation of Economics The major development of the second quarter of 20th century in the field of economics was the mathematization of economics. An economist of 19th century can not even understand the economic journals of present times. Starting from the microeconomics theory, macroeconomics, international trade, economic development, public finance and all the other branches of economics have been changed into a number of equation. What and How did they do it?, is an important question to answer. The...
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...colleagues—particularly my counterpart, Chief Economist Nick Stern—during my first year at the IMF. We regularly cross 19th Street to exchange ideas on research, policy, and life. The relations between our two institutions are excellent—this is not at issue. Of course, to that effect, I think it is also important, before I begin, for me to quash rumors about the demolition of the former PEPCO building that stood right next to the IMF until a few days ago. No, it's absolutely not true that this was caused by a loose cannon planted within the World Bank. Dear Joe: Like you, I came to my position in Washington from the cloisters of a tenured position at a topranking American University. Like you, I came because I care. Unlike you, I am humbled by the World Bank and IMF staff I meet each day. I meet people who are deeply committed to bringing growth to the developing world and to alleviating poverty. I meet superb professionals who regularly work 80-hour weeks, who endure long separations from their families. Fund staff have been shot at in Bosnia, slaved for weeks without heat in the brutal Tajikistan winter, and have contracted deadly tropical diseases in Africa. These people are bright, energetic, and imaginative. Their dedication humbles me, but in your speeches, in your book, you feel free to carelessly slander them. Joe, you may not remember this, but in the late 1980s, I once enjoyed the privilege of being in the office next to yours for a semester. We young economists all looked up to you in awe...
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...the years of inflation and disinflation, followed by a return to what is now regarded as relatively low inflation. It treats four questions: Why did inflation start? Why did it continue for 15 or more years, from 1965 to about 1982? Why did it end? Why did it not return? In this paper, I give an overview of the material that I consider in much greater detail in my book. As we look back to the 1950s and 1960s from the early 21st century, two of the many changes in the Federal Reserve System affecting inflation deserve comment. First, in the 1950s the goal was price stability, zero reported inflation, not inflation of about two percent. The 1959-60 disinflation brought reported cpi inflation, measured as a 12-month moving average, to less than 1 percent from March through August 1959. This measure again was below 1 percent through most of 1961, and it did not reach 2 percent until early 1966. Properly measured and adjusted for biases in the price index, the true price level probably declined modestly during this period. This period of deflation was also a period of sustained economic growth. It, and several periods of deflation discussed in volume 1 of A History of the Federal Reserve, show no evidence of the liquidity trap that absorbed much recent attention in Japan and here. A second major change is the role of economists and economic research at the Board and in...
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...Standard Deviations in the Business World Ilyas Khairi QRB/501 March 22, 2015 Erica Woods Standard Deviations in the Business World Case 1 Purpose of the Study There has been a financial crisis happening around the world over the last decade. It is important to understand why and what is impacting the financial crisis and how it can be improved. Black Swans in this study are events that were the Achilles heel of financial models. There are usually 25 standard deviations evens that happen several days in a row. The purpose of this study is to discuss the implications of black swan events in asset pricing and risk management. Black Swan events disappeared for S&P Index returns are measured relative to standard deviation of the conditional S&P distribution. In this study a one day lagged VIX is used to provide an understandable measure of conditional S&P standard deviation (Marsh & Pfeiderer, 2012). The Research Question How did economists and others get it so wrong and what can be done to change it? Have risk modelers created an industry whose intense technical debates with each other lead gullible outsiders to believe that this is a profession with genuine expertise? Hypothesis "Extant models that properly encompass predictable shifts in investment risk ameliorate much of the alleged "black swan" problem and securities markets do in fact seem to be attuned to the risk of rare economic disasters and "price in" their risk"(Marsh & Pfeiderer, 2012...
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...Rosenberg Professor of Economics (Emeritus), Stanford University Abstract This paper illustrates why technological innovation is considered as a major force in economic growth and focuses on some of the most distinctive features of innovation in the highly industrialized economies of the OECD area. In particular, the paper attempts to examine a primary single feature, “uncertainty” that dominates the search for new technologies by drawing several cases on the American experience. It also touches on the impact of technological innovation in the tourism industry and how it is transforming the tourism business model. Technological innovation, a major force in economic growth It is taken as axiomatic that innovative activity has been the single, most important component of long-term economic growth and this paper will start by drawing upon the findings of a very influential paper published by my colleague at Stanford, Prof. Abramovitx, back in the mid-1950s. In the most fundamental sense, there are only two ways of increasing the output of the economy: (1) you can increase the number of inputs that go into the productive process, or (2) if you are clever, you can think of new ways in which you can get more output from the same number of inputs. And, if you are an economist you are bound to be curious to know which of these two ways has been more important - and how much more important. Essentially what Abramovitz did was to measure the growth in the output of the American economy between...
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...| The Abuse of Keynes’ Theory of Government Spending | And Why Government Spending Needs to Stop | | Chase Cooper | 12/13/2012 | Political Economy Dr.Ramos Abstract: The goal of my research paper is to analyze and present how John Maynard Keynes’ theory on government spending is being abused by the American government insofar that the American government is not following the guidelines and foundations that premised Keynes’ theory, and instead are picking the parts of the theory that allow them to spend at unsustainable levels, creating problems that, one way or another, eventually have to be resolved. My research will prove how the American government is conducting fiscal policy in a way that abuses Keynes’ theory on government spending, and, as a result, why Keynes would not support the American government in their spending endeavors, despite using his theory as their justification. I will be critiquing the application of Keynes’ theory from the Austrian, specifically the works of Friedrich A. Hayek, and Monetarist perspectives, supported by arguments given by Milton Friedman. Section 1: Keynes’ Theory on Government Spending John Maynard Keynes published his famous work, The General Theory of Employment, Interest, and Money, in 1936, during the Great Depression. Economies all over the world were suffering severely from the Great Depression, and there was little hope of economic recovery in the near future. Keynes agreed with the classical economist’s notion...
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...521 Randy Schumacher October 26, 2012 Abstract This paper presents discussion on the raising and countering objections of deciding whether to pursue a Master’s degree in Business Administration (MBA) or not pursue an MBA. The information presented in this paper indicates that the decision for getting an MBA is a big decision driven by the desire to make more money, progress more rapidly, working smarter, and becoming a better person. Getting an MBA is a good way to reconsider a professional path and make an employment transformation without penalty. There is also a particular amount of respect just by possessing an MBA. This paper presents some personal reasons that apply to the decision on why decide to go back to school to obtain an MBA and reasons not to. Writing an Argument My whole life I have heard it said that education is a key element is achieving individual development and life success. Getting an MBA is a big decision. The Master’s in Business Administration (MBA) is a widely accepted in business management around the world. While getting an MBA can be expensive, an MBA is a good way to reconsider a professional path and make an employment transformation without penalty. However, there are some people who say getting an MBA is not needed. They believe that people go to business schools for the the wrong reasons and that individuals can make employment transformations or move up in a career field without having to get an MBA. Big Decision Getting an MBA is...
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...THE ARMCHAIR ECONOMIST by Steven E. Landsburg Praise: "Witty economists are about as easy to find as anorexic mezzo-sopranos, natty mujahedeen, and cheerful Philadelphians. But Steven E. Landsburg...is one economist who fits the bill. In a wide-ranging, easily digested, unbelievably contrarian survey of everything from why popcorn at movie houses costs so much to why recycling may actually reduce the number of trees on the planet, the University of Rochester professor valiantly turns the discussion of vexing economic questions into an activity that ordinary people might enjoy." —JOE QUEENAN, The Wall Street Journal "The Armchair Economist is a wonderful little book, written by someone for whom English is a first (and beloved) language, and it contains not a single graph or equation...Landsburg presents fascinating concepts in a form easily accessible to noneconomists." —ERIK M. JENSEN, The Cleveland Plain Dealer "...enormous fun from its opening page...Landsburg has done something extraordinary: He has expounded basic economic principles with wit and verve." -DAN SELIGMAN, Fortune "An ingenious and highly original presentation of some central principles of economics for the proverbial Everyman. Its breezy tone conceals the subtlety of the analysis. Guaranteed to puncture some illusions and to make you think." —MILTON FRIEDMAN CONTENTS Introduction I. 1. 2. 3. 4. 5. WHAT LIFE IS ALL ABOUT The Power of Incentives: How Seat Belts Kill - 3 Rational Riddles: Why the Rolling Stones...
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...cite literature, explain economic trade-os, and generally approach the issue from an analytic perspective. Sometimes, a student is tempted to stray into opinion-page, journalistic writing in his or her term paper. Do not do this. Teaching good economics writing is one of the goals of the departmental writing requirement and is a valuable lesson for potential thesis writers. You will get a lower grade if your writing is • ungrammatical, • unclear, • journalistic. If you have trouble writing grammatically, please leave yourself some extra time and go to a writing 1 tutor . Clarity is the rst priority in economics writing. Do not worry about being snappy if you are being clear. Journalistic writing is characterized by the lack of an analytical tone. Below, you will nd some notes about the economics style of writing. The desirable style of writing is exemplied by most of the papers on the syllabus. Economists have a certain writing style that can be picked up easily and is useful to learn if you want to be taken seriously by other economists. Some of the points of style may seem arbitrary, but follow them anyway. • Favor the present tense. For instance: ...
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...cite literature, explain economic trade-os, and generally approach the issue from an analytic perspective. Sometimes, a student is tempted to stray into opinion-page, journalistic writing in his or her term paper. Do not do this. Teaching good economics writing is one of the goals of the departmental writing requirement and is a valuable lesson for potential thesis writers. You will get a lower grade if your writing is • ungrammatical, • unclear, • journalistic. If you have trouble writing grammatically, please leave yourself some extra time and go to a writing 1 tutor . Clarity is the rst priority in economics writing. Do not worry about being snappy if you are being clear. Journalistic writing is characterized by the lack of an analytical tone. Below, you will nd some notes about the economics style of writing. The desirable style of writing is exemplied by most of the papers on the syllabus. Economists have a certain writing style that can be picked up easily and is useful to learn if you want to be taken seriously by other economists. Some of the points of style may seem arbitrary, but follow them anyway. • Favor the present tense. For instance: ...
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...of the Literature Prepared for, 11038 Corporate Finance 307 School of Economics and Finance Curtin Business School Curtin University Miri Sarawak Campus Abstract The main objective of this literature review is to highlight the major theories for dividend policy that have been discussed and argued by many researchers over the years. It is aim to helping firms’ management to set their dividend policy and provide additional knowledge to investors. The theoretical aspect is agency theory which has negative relationship between percentages of insiders and ratio of dividend payout. The signaling theory is applicable in the real world but there is no evidence to support changes in dividend payout signaling the current and future performance of the firm. Bird-in-the-hand theory which risk adverse investors prefer receive dividend now instead of sell their shares in future for capital gain and this theory was not agreed by MM. Next is tax preference theory to study whether the level of firm leverage ratio will affect the dividend payout but it is not applicable for Indian firms. Lastly will discuss about how firm size and financial leverage can affect the firms’ dividend payout. In conclusion, since firms are free to choose whether to distribute dividend or retained their earnings, so there are not right or wrong theories and factors for dividend policy. Government regulations on firms and corporate governance implement by the firms make the difficulties for researchers to conclude...
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...University of Portsmouth BA (Hons) in Business Administration/HRM/Marketing U22712 Strategic and Comparative HRM ASSIGNMENT TERM TWO (SEPTEMBER 2013) Student declaration: I declare that: • • • I understand what is meant by plagiarism. The implication of plagiarism has been explained to me by my institution. This assignment is all my own work and I have acknowledged any use of the published and unpublished works of other people. Date:…23rd July 13……………. 11 02nd August 2013 Student ID No.:…018800020682…………. Total number of pages including this cover page Submission Date Students’ ID NRIC/Passport No. Module Name Lecturer’s Name 01st Aug 2013 Due Date 018800020682 UOP Hemis Code G0703121T/B1889671 Strategic and Module Code Comparative HRM Mr Cheah Cheng San U22712 OFFICIAL USE ONLY Marker’s comments Marker’s name: Initial marks awarded Penalty on late submission Penalty for plagiarism Final marks awarded /100 /100 T213 U22712 Assignment September 2013 QUESTION (TASK 1 weighting factor: 40% of total CW marks) Enron: What Caused the Ethical Collapse? Kenneth Lay, former chairman and chief executive officer (CEO) of Enron Corp., in an introductory statement to the revised Enron Code of Ethics issued in July 2000, wrote: “As officers and employees of Enron Corp., its subsidiaries, and its affiliated companies, we are responsible for conducting the business affairs of the companies in accordance with all applicable laws and in a moral and honest...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/1742-2043.htm CPOIB 5,1/2 Wrong assumptions in the financial crisis Manuel B. Aalbers Amsterdam Institute for Metropolitan and International Development Studies, University of Amsterdam, Amsterdam, The Netherlands Abstract Purpose – The purpose of this paper is to show how some of the assumptions about the current financial crisis are wrong because they misunderstand what takes place in the mortgage market. Design/methodology/approach – The paper discusses four wrong assumptions: one related to regulation, one to leveraging, one to subprime lending and one to predatory lending. It briefly discusses some policy implications. Findings – The role of the state in the mortgage market is more complex than suggested by those who blame the state for not doing anything. The concept of leveraging can explain, at least in part, why the losses in financial markets are bigger than the losses in the housing market. Many subprime loans were sold to prime borrowers. Subprime lending was not designed to increase homeownership rates, but to fuel profits by exploiting vulnerable borrowers. Practical implications – It is too easy to argue that everyone made mistakes; most borrowers cannot be blamed for being sold risky, overpriced loans. A rescue plan is needed for defaulting borrowers and those already in foreclosure. Originality/value – The paper does not present new research, but brings together...
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...abides (or tries to abide) by in their everyday life. When young children learn this rule, they are told to never forget it and to use it for the rest of their life: through school, for families, for work. There becomes a gray area, though, when The Golden Rule is brought into the workplace. For some reason, offices and workers feel that this rule doesn’t apply to them. They don’t need to be honest because, in some way, they are benefitting themselves. Business is where The Golden Rule gets tossed and people and firms start to act out of egoism, a form of moral belief. To uncover the “how, where and why” of business ethics, one must explore deeper beyond the surface. First, to understand how big businesses violate ethics, one must know what business ethics are and what they consist of. Second, to understand how businesses and workers act of out egoism, one must know what egoism is and what the beliefs pertain to. Then, connections and examples of businesses violating their ethics and how this unites it with egoism must be found to give a solid foundation for the argument. Finally, after all the connections and ties have been uncovered, one must figure out why businesses are doing such deeds. Of course it is easy to find the definition of ethics; look it up in the dictionary. To define business ethics is a little trickier; they are not grouped together in the dictionary. The Merriam Webster...
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...SUSTAINABLE ECONOMIC DEVELOPMENT A Comparative Study Of The Different Political, Social And Economic Theories Of Development by ALLAN D. TOCA Master in Economics ATTY. DANILO S. AZANA Professor 1st Semester, 2011-2012 CONTENTS Chapter 1 Introduction Chapter 2 Political, Social And Economic Theories Of Development I. Political Theorists A. John Locke: The Labor Theory Of Value B. Jean-Jacques Rousseau: The Social Contract C. Jeremy Bentham: The Greatest Good II. Economic Theorists A. Aristotle B. Plato C. Xenophon D. Thomas Aquinas E. Nicolo Machiavelli F. Jean Bodin G. Antonio Serra H. Thomas Mun I. Physiocrats J. Merchantilists K. Adam Smith L. W.W. Rostow M. Thomas Malthus N. David Ricardo O. Karl Marx P. Jean Sismondi Q. Friedrich List R. Henry Charles Carey S. Henry George T. John Maynard Keynes U. Joseph Schumpeter V. Friedrich Hayek W. John Kenneth Galbraith Chapter 3 Summary, Conclusion and Sources Although the idea of a natural or just price or wage is very noble, prices in reality are subjective. As a human I agree. I mean in the ideal world it would be nice if a fair days work for a fair days pay. Further a fair price based on, I do not know what, something fair and just. But the reality is different. Prices and wages in the real world not the Platonic world are determined subjectively, by supply and demand. That is something in the...
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